RESTRICTED
23821
1
GOVERNMENT OF THE UNITED KINGDOM WILL RESTORE HONG KONG TO THE
PEOPLE'S REPUBLIC OF CHINA WITH EFFECT FROM 1 JULY 1997.
3.
WITH THAT IN MIND, HER MAJESTY'S GOVERNMENT RECENTLY
RAISED WITH THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA THE
QUESTION OF A GUARANTEE AFTER 1 JULY 1997 OF HONG KONG'S
OBLIGATIONS TO THE BANK DERIVING FROM HONG KONG'S MEMBERSHIP.
THE CHINESE GOVERNMENT HAVE CONFIRMED THROUGH AN EXCHANGE OF
MEMORANDA IN PEKING ON 14 OCTOBER 1985 THAT, ON THE BASIS THAT
THE PEOPLE'S REPUBLIC OF CHINA BECAME A MEMBER OF THE ASIAN
DEVELOPMENT BANK, THEY (NEXT WORD UNDERLINED) WILL UNDERTAKE TO
ASSUME, AS FROM 1 JULY 1997, THE GUARANTEES GIVEN BY THE UNITED
KINGDOM GOVERNMENT OF HONG KONG'S CALLABLE CAPITAL SUBSCRIPTIONS
INCLUDING ITS CONTINGENT LIABILITY UNDER THE THIRD GENERAL
CAPITAL INCREASE. I ATTACH A COPY OF THE EXCHANGE OF MEMORANDA
BETWEEN THE BRITISH AND CHINESE GOVERNMENTS.
не
THE UNITED KINGDOM WILL THEREFORE REMAIN THE GUARANTOR OF
HONG KONG'S OBLIGATIONS TO THE BANK UNTIL 30 JUNE 1997. HER
MAJESTY'S GOVERNMENT HAVE OBTAINED PARLIAMENTARY APPROVAL TO
EXTEND THE LIMIT OF THE UK'S GUARANTEE, IN ORDER TO COVER THE
OBLIGATIONS THAT HONG KONG WILL INCUR AS A RESULT OF ITS
ACQUISITION OF SHARES UNDER THE THIRD GENERAL CAPITAL INCREASE.
HONG KONG IS THEREFORE NOW IN A POSITION TO PURCHASE THE NEW
SHARES.
5.
THE HONG KONG GOVERNMENT EXPECTS TO COMPLETE THE
NECESSARY INTERNAL PROCEDURES RELATING TO THE ACQUISITION OF
THESE NEW SHARES IN THE NEAR FUTURE, WELL WITHIN THE REVISED SUBSCRIPTION DATE OF 31 MAY 1986.
ENDS.
HOWE
HONG KONG AGREEMENT: RESTRICTED
LIMITED
HD/HKD
HD/FED
RESEARCH D (FE)
DEP/HD PUSD
PS/MR RENTON MR WILSON
COPIES TO:
MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS
MR
Hill
14
me
M.2
CARTER DENISUN
IFI DIú
ODA
TSY
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